(Corrects Jonah Crane’s spelling in paragraphs 15 and 18)
Author: Hannah Lang
(Reuters) – The cryptocurrency industry is pushing President-elect Donald Trump’s team to begin his promised overhaul of crypto policy when he takes office next month with executive orders that would help push the token into the mainstream, according to industry officials.
Trump plans to issue a series of executive orders and directives on everything from immigration to energy on his first day in office on Jan. 20, Reuters reported this month.
During the campaign, Trump courted crypto-cash by promising to be a “crypto president,” and the industry wants to follow through on that promise with executive orders to create a bitcoin stockpile, provide the industry with access to banking services and create a crypto council, the people said.
They are pushing for those executive orders within Trump’s first 100 days in office and expect at least one could come as early as Jan. 20, two other people familiar with the matter said.
“Given the content of the campaign, it would be imperative that the executive orders really set out what the actual priorities are going to be on day one and provide some sort of plan,” said Rebecca Rettig, chief legal and policy officer at crypto firm Polygon Labs. .
Worried about crime and volatility, President Joe Biden’s regulators cracked down on crypto companies, but Trump has vowed to change course. His crypto policy team is already taking shape, with the announcement this month of crypto-friendly Securities and Exchange Commission Chairman Paul Atkins and White House crypto czar David Sacks.
“There have been efforts in the Washington bureaucratic quagmire to stifle innovation … but President Trump will deliver on his promise to foster American leadership in crypto,” Trump transition team spokesman Brian Hughes said in a statement.
the world’s largest cryptocurrency, hit new highs above $107,000 this month after Trump reiterated his plan, first outlined in a speech in July, for a strategic bitcoin reserve. Bitcoin has since fallen back below $100,000.
Analysts are divided on whether Trump could use executive authority to create the reserve, potentially through the Treasury Department, or whether it would require an act of Congress.
One industry group, the Bitcoin Policy Institute, has gone so far as to draft the text of a potential executive order that Trump could use to establish such a stockpile.
According to a draft seen by Reuters, the bill would designate bitcoin as a strategic reserve asset and require the finance minister to spend $21 billion a year to build up the nation’s bitcoin stockpile.
Zack Shapiro, policy director of the Bitcoin Policy Institute, said the United States should be ahead of geopolitical rivals in monetizing bitcoin, “rather than the price going up without the United States having reserves.” He declined to say whether the group shared the draft with Trump’s team.
Trump also said in July that he would not allow banks to “choke” crypto companies out of the traditional financial system, and some executives expect him to also try to address that issue with an executive order. Crypto companies have long complained that banks don’t want to work with them because of regulatory oversight, even though regulators say banks are free to lend to crypto companies that follow the law.
While an executive order ordering bank regulators to go easy on crypto would send a signal to agency officials and give them political cover, it is unlikely to carry legal force because federal bank regulators are independent, some executives warned.
“(They’re) not going to change policy on the ground on day one,” said Jonah Crane, a partner at financial firm Klaros Group. “But they will tell you what direction this administration wants to go.”
Trump also said he would establish a crypto industry council and his team is discussing how to structure and staff it. Previous administrations established specialized councils by executive order, executives noted.
More broadly, Trump could also try to address crypto complaints that existing regulations are inadequate for the industry with an executive order articulating core principles for crypto regulation, similar to an order Trump issued in 2017 directing regulators to review banking rules.
“I wouldn’t be surprised if you get something like an executive order early on that directs agencies to review their rules in this space,” Crane added.
